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Tuesday, March 06, 2007
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Market Commentary
Feb 23 2007 9:46AM
Power Finance Corporation may see action on debut

Power Finance Corporation debuts on the bourses today. The IPO had received strong investor response. The issue was subscribed 77.24 times, amidst heavy bidding by FIIs. The IPO was priced at the upper end of the Rs 73 - Rs 85 price band. NSE has also included the stock in the futures & option segment. The lot size of PFC in NSEs futures & options segment is 2,400.

Atlanta may edge lower after the Securities & Exchange Board of India (Sebi) took action against the promoter and other entities for alleged price rigging of the scrip. The regulator has asked the promoter group comprising 16 entities of Atlanta, and entities/persons associated with them (14 entities) not to deal in the stock of the company. Rajoo Barot, Managing Director, and Sachin Jain, Company Secretary, also feature in the list.

Sebi also directed Atlanta not to issue any equity shares, or any other instruments convertible into equity shares, in any manner, or give effect to any alteration in its capital structure till further directions. The depositories have been asked to neither dematerialise the convertible warrants and shares issued upon conversion, nor give effect to the stock split, till further directions.

The share price of Atlanta rose abnormally after its listing at Rs 170 on 25 September 2006. It had surged in a short while, to reach Rs 1264.20 by 11 December 2006.

The Reserve Bank of India on Thursday said foreign funds can now make purchases of shares and convertible debentures of Rolta India through the primary and secondary markets, up to 40% of its capital. The central bank also banned purchases in the shares of Jaiprakash Associates without obtaining prior permission, as the foreign fund limit of 22% had been reached.

Drug maker Krebs Biochemicals & Industries said on Thursday its board had approved issuing 1.05 million shares to Ranbaxy Laboratories. Krebs shares ended 3.7% higher, at Rs 88.50, in a weak market on Thursday.

Wockhardts consolidated net profit rose 19.5% in the December 2006 quarter to Rs 87.10 crore from Rs 72.90 crore in the December 2005 quarter. Total income surged to Rs 534.20 crore (Rs 368.90 crore).

Software services firm Zensar Technologies said on Friday its US unit planned to buy out US-based ThoughtDigital. Zensar's wholly-owned unit, Zensar Technologies Inc. has signed a membership purchase agreement with ThoughtDigital and its holding company, SOA Software, for the acquisition.

Zensar has also formed a special purpose vehicle (SPV), Zensar TD, which will acquire, own and operate the whole business of ThoughtDigital. Zensar's US-subsidiary will hold 100% in the SPV, it said.

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